Companies will be capable of proceed holding extraordinary normal conferences (EGMs) and take key choices through video conferencing (VC) until December 31, in response to a notification issued by the Ministry of Corporate Affairs (MCA).
The authorities had in April final 12 months permitted firms to carry EGMs by way of VC or different audio visible means in mild of the Covid-19 pandemic whereas additionally requiring that such conferences observe prescribed pointers geared toward guaranteeing transparency and defending the rights of shareholders.
Experts famous that the transfer to increase this proper would assist permit firms to make vital choices rapidly as firms proceed to cope with the affect of the Covid-19 pandemic.
“The amendment by the MCA is a welcome move in line with the changing times and needs of businesses and professionals. This is one more step towards ease of doing business in India and will help in removing administrative bottlenecks and result in swift decision making by companies and their boards,” mentioned Khazat Kotwal, accomplice, Deloitte India.
Companies opting to carry EGMs by way of VCs or different audio visible means are required to take care of recorded transcripts of proceedings in such conferences with public firms, and, moreover being required to host such transcripts on their web sites.
Companies are additionally required to file any resolutions handed in such conferences earlier than the Registrar of Companies inside 60 days.
